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Mike Blank [00:02:15] I frankly, I think this is what inspired us to think about this idea of a gaming subscription because we were seeing what was happening in the world of movies and music and books and where Netflix was. And it was clear that if you could offer something of value in the entertainment space to a consumer with low friction, with tremendous convenience, at a price that was reasonable, that that package would be something that someone would want to pay for. In our case, in the world of console gaming games are roughly 60 dollars as an upfront cost. And that cost has been relatively similar for many, many years. And so our business has been built around blockbuster releases of amazing entertainment, immersive entertainment experiences that someone would pay for and then enjoy for some period of time. Not dissimilar, perhaps, to a blockbuster movie that you might go to a movie theater for. Although the price point is a lot higher for games, it cost hundreds of millions of dollars to build a triple-A game. The world of gaming has evolved, but that price point that sixty dollars price point has remained relatively stagnant. And so when I reflect back about like, well, why did we get into this business? It was because what we were seeing, the behavior that we were seeing in the rest of the entertainment world. And the question we asked ourselves was, why is this not happening in games? What is different about gaming that is preventing us or any other publisher or any other major developer of gaming consoles to experiment in the world of subscriptions? Gaming is more complicated, though. Why is gaming more complicated? Games are locked to particular platforms. The form factor of a game the way in which you interact with the game is different by platform. So if you want to play on a console, you have a controller. If you want to play PC, you have a keypad. If you're playing on a mobile device, it's a touch screen. The power of each of those systems,, while becoming more similar today, are not the same. Therefore, the game experienced by platform has to be different and there's a wide variety of ways in which you might pay. Sometimes games are free and then you pay on top of that. Sometimes games are paid for upfront. Some games are cheap. Some games are expensive. There is no one size fits all experience for gaming. And so finding a model that can cross over between the myriad of different ways in which someone might buy and then play a game, that threading that needle is amazingly difficult. So you can't actually point to Netflix or to Hulu or Spotify or any other entertainment like service and say, let's just steal that and apply that model to gaming. Although that's the natural inclination. It was our natural inclination when we first began the process of thinking about what could a subscription look like in the video game world.
Mike Blank [00:07:58] The very first offering, which we actually never offer to anybody, put all of our games in a subscription and we have games that we could offer in a subscription dating back to 1980 something all the way through to the games that are being released day and date today, because we thought that naturally any player would want the newest games. People want the latest, just like they want to watch the latest movies. But they also love playing games that are from the past great titles that they've known about and love but never played and never had the opportunity to play. And so we wanted to package all of that up and deliver that as the offering. We never did that. Or we actually should say we didn't do that at first. We came together and put forward this idea that we'd offer all of our games and it would be amazing. And the reception we received was, I'd say, interested, but with an extreme amount of trepidation and perhaps fear. And the reason for that was our business is built on, was then not anymore, but was then built on selling 60 dollar games and reengaging players in those games over time. And if we were to supplant that 60 dollar game with, let's say, a five dollar monthly offer, we could turn a 60 dollar sale into a five dollar sale and cannibalize our entire business.
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